Accounting Policies of Elpro International Ltd. Company

Mar 31, 2015

1. COMPANY OVERVIEW-

Elpro International Limited is engaged in the business of manufacturing of
Other Electrical equipments like Lighting Arresters, Varistors, Surge Arrestor
& also engaged in Real Estate development Service. The Company has manufacturing
plant located at Chinchwad, Maharashtra.

a. Basis of Preparation of Financial Statements

The financial statements are prepared in accordance with Indian
Generally Accepted Accounting Principles ("GAAP") under the historical
cost convention on an accrual basis and are in conformity with
mandatory accounting standards, as prescribed by the Companies
(Accounting Standards) Rules, 2006, the provisions of the Companies
Act, 1956 and guidelines issued by the Securities and Exchange Board of
India (SEBI).

b. Use of Estimates

The preparation of the financial statements in conformity with GAAP
requires Management to make estimates and assumptions that affect the
reported balances of assets and liabilities and disclosure relating to
contingent liabilities as at the date of the financial statements and
reported amounts of income and expenses during the period. Examples of
such estimates include provision for doubtful debts, future obligations
under employee retirement benefit plans, income taxes and the useful
lives of fixed assets and intangible assets.

Management believes that the estimates used in the preparation of
financial statements are prudent and reasonable. Future results could
differ from these estimates.

c. Tangible Fixed Assets

Fixed assets are stated at cost, net of accumulated depreciation and
accumulated impairment losses, if any. The cost comprises Purchase
price, Borrowing Costs if capitalization criteria are met and any other
directly attributable cost of bringing the asset to its working
condition for the intended use, net off of any trade discounts &
rebates. Subsequent expenditure related to an item of fixed asset is
added to its book value only if it increases the future benefits from
the existing asset beyond its previously assessed standard of
performance. All other expenses on existing fixed asset, including day
to day repair & maintenance expenditure & cost of replacing parts, are
changed to the statement of profit & loss for the period during which
such expenses are incurred. Gains or losses arising from derecognition
of fixed assets are measured as the difference between the net disposal
proceeds & the carrying amount of the asset & are recognized in the
statement of Profit & Loss when the asset is derecognized. Capital
assets under erection/installation are stated in the Balance sheet as
"Capital Work-in-Progress"

d. Intangible Assets

Intangible assets are recorded at the consideration paid for
acquisition of such assets and are carried at cost less accumulated
amortization and impairment. They are amortized on a straight line
basis over their estimated useful lives.

e. Depreciation and Amortisation

In respect of fixed assets (other than capital work-in-progress)
acquired during the year, depreciation/amortization is charged on a
straight line basis so as to write off the cost of the assets over the
useful lives and for the assets acquired prior to April 1, 2014, the
carrying amount as on April 1, 2014 is depreciated over the remaining
useful life based on an evalution. The useful life of the asset is
determined as prescribed in schedule II to the Companies Act, 2013.

f. Assets Taken and Given on Lease Assets taken on lease:

i In respect of finance lease arrangements, the assets are capitalized
and depreciated. Finance charges are charged off to the Statement of
Profit and Loss of the year in which they are incurred.

ii. Operating lease payments are recognized as expenditure in the
Statement of Profit and Loss on straight line basis, representative of
the time pattern of benefits received from the use of the assets taken
on lease.

Asset given on lease:

Lease rentals are accounted on accrual basis in accordance with the
respective lease agreements.

g. Investments

All Investments has been categorized as Long-term investments.
Long-term investments are valued at cost. Provision for diminution, if
any, in the value of investments is made to recognise a decline, other
than temporary.

h. Inventories

Inventories are stated at the lower of cost and net realizable value.
In determining the cost of loose tools, stores and spares, raw
materials and components, the weighted average method is used. Cost of
manufactured components, work in progress and manufactured finished
goods include cost of conversion and other costs incurred in bringing
the inventories to their present location and condition which is
determined on absorption cost basis.

i. Inventories - Project in progress

Project in progress is valued at lower of cost or net realisable value.
Cost includes cost of land, materials, construction, services,
borrowing costs and other overheads relating to the particular
projects.

j. Foreign exchange transactions

Transactions in foreign currencies are recorded at the prevailing
exchange rates on the transaction dates. Realised gains and losses on
settlement of foreign currency transactions are recognized in the
Statement of Profit and loss account.

Foreign currency monetary assets and liabilities at the year end are
translated at the year end exchange rates and resultant exchange
differences are recognised in the Statement of Profit and Loss.

k. Revenue recognition

i) Sale of goods is recognised on dispatch to customer and are recorded
net of sales tax and excise duties and excludes export incentives such
as duty drawbacks.

ii) Rental income is recognised on accrual basis.

iii) Income from Joint development of property will be recognized, when
Sale Deed will be executed in favour of the third party.

iv) Revenue from wind mill power project is recognised on the basis of
actual power sold as per the terms of the power purchase agreements
entered into with the respective parties.

v) Income from projects is recognized on the transfer of all
significant risks and rewards of ownership to the buyers and it is not
unreasonable to expect ultimate collection and no significant
uncertainty exists regarding the amount of consideration. However if,
at the time of transfer, substantial acts are yet to be performed under
the agreement, revenue is recognized on proportionate basis as the acts
are performed, i.e. on the percentage of completion basis, subject to
the actual cost incurred being at least 25% of the total estimated
project cost involved and further subject to receipt of at least 20% of
the total sales consideration. Determination of revenues under the
percentage of completion method necessarily involves making estimates
by the Company, some of which are of a technical nature, concerning,
where relevant, the percentages of completion, costs to completion, the
expected revenues from the project and the foreseeable losses to
completion.

l. Research and development expenditure

Research and development expenditure, other than capital expenditure is
expensed out as and when incurred.

m. Retirement benefits

- Gratuity

Liabilities with regard to the gratuity benefits payable in future are
determined by actuarial valuation at each Balance Sheet date using the
Projected Unit Credit Method and contributed to Employees Gratuity Fund
managed by Life Insurance Corporation of India. Actuarial gains and
losses arising from changes in actuarial assumptions are recognized in
the Statement of Profit and Loss in the period in which they arise.

- Leave Encashment

The Company provides for the encashment of leave with pay subject to
certain rules. The employees are entitled to accumulate leave subject
to certain limits, for future encashment/availment. The liability is
provided based on the number of days of unutilized leave at each
balance sheet date on the basis of an independent actuarial valuation.

- Provident Fund

Provident fund contributions are made to a trust administered by the
Company and are charged to the Statement of Profit and Loss. The
Company has an obligation to make good the shortfall if any, between
return of investment by the trust and government administered interest
rate.

n. Provisions

Provision is made when there is present obligation as a result of a
past event that probably requires an outflow of economic resources and
a reliable estimate can be made of the amount of the obligation. A
disclosure for a contingent liability is made, when there is a possible
obligation or a present obligation that may, but probably will not,
require an outflow of resources. When there is a possible obligation or
a present obligation in respect of which the likelihood of outflow of
resources is remote, no provision or disclosure is made.

Liquidated damages/penalties are provided for meeting the obligations
arising from delay in contractual delivery schedules.

Provision for probable warranty claim is based on Management's estimate
and judgment and is provided as a percentage of average claims of past
three years for average warranty period of 18 months.

o. Accounting for Taxes on Income

Provision for current tax is made, based on the tax payable under the
Income Tax Act, 1961. Minimum Alternative Tax (MAT) credit, which is
equal to the excess of MAT (calculated in accordance with provisions of
section 115JB of the Income tax Act, 1961) over normal income-tax is
recognized as an asset by crediting the Statement of Profit and Loss
only when and to the extent there is convincing evidence that the
Company will be able to avail the said credit against normal tax
payable during the period of seven succeeding assessment years.

Deferred tax on timing differences between taxable income and
accounting income is accounted for, using the tax rates and the tax
laws enacted or substantially enacted as on the balance sheet date.
Deferred tax assets on unabsorbed tax losses and unabsorbed tax
depreciation are recognised only when there is a virtual certainty of
their realisation. Other deferred tax assets are recognised only when
there is a reasonable certainty of their realisation.

p. Impairment

The Company reviews the carrying value of tangible and intangible
assets for any possible impairment at each balance sheet date. An
impairment loss is recognized when the carrying amount of an asset
exceeds its recoverable amount. In assessing the recoverable amount,
the estimated future cash flows are discounted to their present value
at appropriate discount rates.

q. Contingent liabilities

Contingent liabilities are disclosed in respect of possible obligations
that arise from past events but their existence will be confirmed by
the occurrence or non-occurrence of one or more uncertain future events
not wholly within control of the Company. A provision is made based on
a reliable estimate when it is probable that an outflow of resources
embodying economic benefits will be required to settle an obligation at
the year end date. Contingent assets are not recognized or disclosed in
the financial statements.

r. Segment Reporting

Segments have been identified having regard to the dominant source and
nature of risks and returns and the internal organisation and
management structure. Inter-segment revenue is accounted on the basis
of market price. Unallocated corporate expenses include revenue and
expenses which relate to the enterprise as a whole and are not
attributable to segments.

s. Borrowing Costs

Borrowing Costs that are attributable to the acquisition, construction
or production of a qualifying asset is capitalized as part of the cost
of that asset. Other borrowing costs are recognized as expense in the
period in which they are incurred.

Mar 31, 2014

A. Basis of Preparation of Financial Statements

The financial statements are prepared in accordance with Indian
Generally Accepted Accounting Principles ("GAAP") under the
historical cost convention on an accrual basis and are in conformity
with mandatory accounting standards, as prescribed by the Companies
(Accounting Standards) Rules, 2006, the provisions of the Companies
Act, 1956 and guidelines issued by the Securities and Exchange Board of
India (SEBI).

b. Use of Estimates

The preparation of the financial statements in conformity with GAAP
requires Management to make estimates and assumptions that affect the
reported balances of assets and liabilities and disclosure relating to
contingent liabilities as at the date of the financial statements and
reported amounts of income and expenses during the period. Examples of
such estimates include provision for doubtful debts, future obligations
under employee retirement benefit plans, income taxes and the useful
lives of fixed assets and intangible assets.

Management believes that the estimates used in the preparation of
financial statements are prudent and reasonable. Future results could
differ from these estimates.

c. Fixed Assets, Intangible Assets and Capital Work in Progress

Fixed assets and intangible assets are stated at cost of acquisition or
construction less accumulated depreciation and impairment. Cost
includes taxes, duties, freight and other incidental expense related to
acquisition and installation. Borrowing costs attributable to
acquisition, construction of qualifying asset (i.e. an asset requiring
substantive period of time to get ready for intended use) are
capitalized in accordance with the requirements of Accounting Standard
16 (AS 16), "Borrowing Costs" mandated by Rule 3 of the Companies
(Accounting Standards) Rules 2006.

Capital work in progress comprises of outstanding advances paid to
acquire fixed assets and cost of fixed assets that are not yet ready
for their intended use at the year end.

d. Depreciation and Amortisation

Depreciation is provided on straight line method, except for assets
acquired prior to January 1, 1987 which are depreciated on reducing
balance method, at the rates and in the manner specified in Schedule
XIV to the Companies Act, 1956 as applicable from time to time, except
for assets costing less than Rs. 5,000 each which are fully depreciated
in the year of purchase.

e. Assets Taken and Given on Lease

Assets taken on lease:

i. In respect of finance lease arrangements, the assets are capitalized
and depreciated. Finance charges are charged off to the Statement of
Profit and Loss of the year in which they are incurred.

ii. Operating lease payments are recognized as expenditure in the
Statement of Profit and Loss on straight line basis, representative of
the time pattern of benefits received from the use of the assets taken
on lease.

Asset given on lease:

Lease rentals are accounted on accrual basis in accordance with the
respective lease agreements.

f. Investments

Long-term investments are valued at cost. Provision for diminution, if
any, in the value of investments is made to recognise a decline, other
than temporary.

Current investments are stated at the lower of cost and fair value,
computed individually for each investment.

In case of investments in mutual funds which are unquoted, net assets
value is taken as fair value.

g. Inventories

Inventories are stated at the lower of cost and net realizable value.
In determining the cost of loose tools, stores and spares, raw
materials and components, the weighted average method is used. Cost of
manufactured components, work in progress and manufactured finished
goods include cost of conversion and other costs incurred in bringing
the inventories to their present location and condition which is
determined on absorption cost basis.

h. Inventories - Project in progress

Project in progress is valued at lower of cost or net realisable value.
Cost includes cost of land, materials, construction, services,
borrowing costs and other overheads relating to the particular
projects.

i. Foreign exchange transactions

Transactions in foreign currencies are recorded at the prevailing
exchange rates on the transaction dates. Realised gains and losses on
settlement of foreign currency transactions are recognized in the
Statement of Profit and loss account.

Foreign currency monetary assets and liabilities at the year end are
translated at the year end exchange rates and resultant exchange
differences are recognised in the Statement of Profit and Loss.

j. Revenue recognition

i) Sale of goods is recognised on dispatch to customer and are recorded
net of sale tax and excise duties and excludes export incentives such
as duty drawbacks.

ii) Rental income is recognised on accrual basis.

iii) Income from Joint development of property will be recognized, when
Sale Deed will be executed in favour of the third party.

iv) Revenue from wind mill power project is recognised on the basis of
actual power sold as per the terms of the power purchase agreements
entered into with the respective parties.

v) Income from projects is recognized on the transfer of all
significant risks and rewards of ownership to the buyers and it is not
unreasonable to expect ultimate collection and no significant
uncertainty exists regarding the amount of consideration. However if,
at the time of transfer, substantial acts are yet to be performed under
the agreement, revenue is recognized on proportionate basis as the acts
are performed, i.e. on the percentage of completion basis, subject to
the actual cost incurred being at least 25% of the total estimated
project cost involved and further subject to receipt of at least 20% of
the total sales consideration. Determination of revenues under the
percentage of completion method necessarily involves making estimates
by the Company, some of which are of a technical nature, concerning,
where relevant, the percentages of completion, costs to completion, the
expected revenues from the project and the foreseeable losses to
completion.

k. Research and development expenditure

Research and development expenditure, other than capital expenditure is
expensed out as and when incurred.

l. Retirement benefits

Gratuity

Liabilities with regard to the gratuity benefits payable in future are
determined by actuarial valuation at each Balance Sheet date using the
Projected Unit Credit Method and contributed to Employees Gratuity Fund
managed by Life Insurance Corporation of India. Actuarial gains and
losses arising from changes in actuarial assumptions are recognized in
the Statement of Profit and Loss in the period in which they arise.

Leave Encashment

The Company provides for the encashment of leave with pay subject to
certain rules. The employees are entitled to accumulate leave subject
to certain limits, for future encashment/availment. The liability is
provided based on the number of days of unutilized leave at each
balance sheet date on the basis of an independent actuarial valuation.

Provident Fund

Provident fund contributions are made to a trust administered by the
Company and are charged to the Statement of Profit and Loss. The
Company has an obligation to make good the shortfall if any, between
return of investment by the trust and government administered interest
rate.

m. Provisions

Provision is made when there is present obligation as a result of a
past event that probably requires an outflow of economic resources and
a reliable estimate can be made of the amount of the obligation. A
disclosure for a contingent liability is made, when there is a possible
obligation or a present obligation that may, but probably will not,
require an outflow of resources. When there is a possible obligation or
a present obligation in respect of which the likelihood of outflow of
resources is remote, no provision or disclosure is made.

Liquidated damages/penalties are provided for meeting the obligations
arising from delay in contractual delivery schedules.

Provision for probable warranty claim is based on Management''s
estimate and judgment and is provided as a percentage of average claims
of past three years for average warranty period of 18 months.

n. Accounting for Taxes on Income

Provision for current tax is made, based on the tax payable under the
Income Tax Act, 1961. Minimum Alternative Tax (MAT) credit, which is
equal to the excess of MAT (calculated in accordance with provisions of
section 115JB of the Income tax Act, 1961) over normal income-tax is
recognized as an asset by crediting the Statement of Profit and Loss
only when and to the extent there is convincing evidence that the
Company will be able to avail the said credit against normal tax
payable during the period of ten succeeding assessment years.

Deferred tax on timing differences between taxable income and
accounting income is accounted for, using the tax rates and the tax
laws enacted or substantially enacted as on the balance sheet date.
Deferred tax assets on unabsorbed tax losses and unabsorbed tax
depreciation are recognised only when there is a virtual certainty of
their realisation. Other deferred tax assets are recognised only when
there is a reasonable certainty of their realisation.

o. Impairment

The Company reviews the carrying value of tangible and intangible
assets for any possible impairment at each balance sheet date. An
impairment loss is recognized when the carrying amount of an asset
exceeds its recoverable amount. In assessing the recoverable amount,
the estimated future cash flows are discounted to their present value
at appropriate discount rates.

p. Contingent Liabilities

Contingent liabilities are disclosed in respect of possible obligations
that arise from past events but their existence will be confirmed by
the occurrence or non -occurrence of one or more uncertain future
events not wholly within control of the Company. A provision is made
based on a reliable estimate when it is probable that an outflow of
resources embodying economic benefits will be required to settle an
obligation at the year end date. Contingent assets are not recognized
or disclosed in the financial statements.

q. Segment Reporting

Segments have been identified having regard to the dominant source and
nature of risks and returns and the internal organisation and
management structure. Inter-segment revenue is accounted on the basis
of market price. Unallocated corporate expenses include revenue and
expenses which relate to the enterprise as a whole and are not
attributable to segments.

r. Borrowing Costs

Borrowing Costs that are attributable to the acquisition, construction
or production of a qualifying asset is capitalized as part of the cost
of that asset. Other borrowing costs are recognized as expense in the
period in which they are incurred.

Mar 31, 2013

A. Basis of Preparation of Financial Statements

The financial statements are prepared In accordance with Indian
Generally Accepted Accounting Principles ("GAAP") under the historical
cost convention on an accrual basis and are In conformity with
mandatory accounting standards , as prescribed by the Companies
(Accounting Standards) Rules, 2006, the provisions of the Companies
Act, 195S and guidelines issued by the Securities and Exchange Board of
India (SEBI).

b. Use of Estimates

The preparation of the financial statements in conformity with GAAP
requires Management to make estimates and assumptions that affect the
reported balances of assets and liabilities and disclosure relating to
contingent liabilities as at the date of the financial statements and
reported amounts of Income and expenses during the period. Examples of
such estimates include provision for doubtful debts, future obligations
under employee retirement benefit plans, income taxes and the useful
lives of fixed assets and Intangible assets.

Management believes that the estimates used in the preparation of
financial statements are prudent and reasonable. Future results could
differ from these estimates.

c. Fixed Assets, Intangible Assets and Capital Work in Progress

Fixed assets and intangible assets are stated at cost Df acquisition or
construction less ''accumulated depreciation and Impairment. Cost
includes taxes, duties, freight and other incidental expense related to
acquisition and installation.''Borrowing costs attributable to
acquisition, construction of qualifying asset (i.e. an asset requiring
substantive period of time to get ready for intended use) are
capitalized in accordance with the requirements of Accounting Standard
16(AS 16)," Borrowing Costs" mandated by Rule 3 of the Companies
(Accounting Standards) Rules 2006.

Capita! work in progress comprises of outstanding advances paid to
acquire fixed assets and cost of fixed assets that are - not yet ready
for their intended use at the year end.

d. Depreciation and Amortisation

Depreciation is provided on straight line method, except for assets
acquired prior to January 1,19B7 which are depreciated on reducing
balance method, at the rates and in the manner specified in Schedule
XIV to the Companies Act, 1956 as applicable from time to time, except
for assets costing less than Rs. 5,000 each which are fully depreciated
in the year of purchase.

e. Assets Taken and Given on Lease Assets taken on lease:

i In respect of finance lease arrangements, the assets are capitalized
and depreciated. Finance charges are charged

off to the Statement of Profit and Loss of the year in which they are
incurred. it. Operating lease payments are recognized as expenditure
in the Statement of Profit and Loss on straight line basis,
representative of the time pattern of benefits received from the use of
the assets taken on lease.

Asset given on lease:

Lease rentals are accounted on accruaJ''basis in accordance with the
respective lease agreements.

f. Investments

Long-term investments are valued at cost. Provision for''diminufion, if
any, in the value of Investments is made to recognise a decline, other
than temporary.

Current investments are stated at the lower of cost and fair value,
computed individually for each investment. In case of investments in
mutual funds which are unquoted, net assets'' value is taken as fair
value.

g. Inventories

Inventories are stated at the lower of cost and net realizable value.
In determining the cost of loose tools, stores and spares, raw
materials and components, the weighted average method is used. Cost of
manufactured components, work In progress and manufactured finished
goods include cost of conversion and other costs incurred in bringing
the inventories to their present location and condition which is
determined on absorption cost basis.

h. Inventories - Project in progress

Project in progress is valued at lower of cost or net realisable value.
Cost Includes cost of land, materials, construction, services,
borrowing costs and other overheads relating to the particular
projects.

E. Foreign exchange transactions

Transactions in foreign currencies are recorded at the prevailing
exchange rates on the transaction dates. Realised gains and losses on
settlement of foreign currency transactions are recognized in the
Statement of Profit and loss account. Foreign currency monetary assets
and liabilities at the year end are translated at the year end exchange
rates and resultant exchange differences are recognised in the
Statement of Profit and Loss.

F. Revenue recognition

i) Sale of goods is recognised on dispatch to customer and are records
net of sale tax and excise duties and excludes export Incentives such
as duty drawbacks.

ii) Rental income is recognised on accrual basis.

iii) Income from Joint development of property will be recognized, when
Sale Deed will be executed in favour of the third parly.

iv) - Revenue from wind mill power project Is recognised on the basis
of actual power sold as per the terms of the power purchase agreements
entered into with the respective parties.

v) Income from projects is recognized on the transfer of all
significant risks and rewards of ownership to the buyers and it is not
unreasonable to expect ultimate collection and no significant
uncertainty exists regarding the amount of consideration. However if,
at the time of transfer, substantial acts are yet to be performed under
the agreement, revenue is recognized on proportionate basis as the acts
are performed, l.e. on the percentage of completion basts, subject to
the actual cost incurred being at least 25% of the total estimated
project cost involved and further subject to receipt of at least 20% of
the total sales consideration. Determination of revenues under the
percentage of completion method necessarily involves making estimates
by the Company, some of which are of a technical nature, concerning,
where relevant, the percentages of completion, costs to completion, the
expected revenues from the project and the foreseeable losses to
completion.

k. Research and development expenditure

Research and development expenditure, other than capital expenditure is
expensed out as arid when incurred. --"

I. Retirement benefits

- Gratuity:

Liabilities with regard to the gratuity benefits payable in future are
determined by actuarial valuation at each Balance Sheet date using the
Projected Unit Credit Method and contributed to Employees Gratuity Fund
managed by Life Insurance Corporation of India. Actuarial gains and
losses arising from changes in actuarial assumptions are recognized in
the Statement of Profit and Loss in the period in which they arise.
Leave encashment

The Company provides for the encashment of leave with pay subject to
certain rules. The employees are entitled to1 accumulate leave subject
to certain limits, for future encashment/availment. The liability Is
provided based on the number of days of unutilized leave at each
balance sheet date on the basis of an independent actuarial valuation.

- Provident fund

Provident fund contributions are made to a trust administered by the
Company and are charged to the Statement of Profit and Loss. The
Company has an obligation to make good the shortfall if any, between
return of investment by the trust and government administered interest
rate.

m. Provisions

Provision is made when there is present obligation as a result of a
past event that probably requires an outflow of economic resources and
a reliable estimate can be made of the amount of the obligation. A
disclosure for a contingent liability is made, when there is a possible
obligation or a present obligation that may, but probably will not,
require an outflow of resources. When there is a possible obligation or
a present obligation in respect of which the likelihood of outflow of
resources Is remote, no provision or disclosure Is made.

Liquidated damages/penalties are provided for meeting the obligations
arising from delay in contractual delivery schedules.

Provision for probable warranty claim is based on Management''s estimate
and judgment and is provided as a percentage of average claims of past
three years for average warranty period of 1B months.

n. Accounting for Taxes on Income

Provision for current tax is made, based on the tax payable under the
Income Tax Act, 1961. Minimum Alternative Tax (MAT) credit, which is
equal to the excess of MAT (calculated in accordance with provisions of
section 115JB of the Income tax Act, 1961) over normal Income-tax is
recognized as an asset by crediting the Statement of Profit and Loss
only when and to the extent there Is convincing evidence that the
Company will be able to avail the said credit against normal tax
payable during the period of ten succeeding assessment years.

Deferred tax on timing differences between taxable Income and
accounting income Is accounted for, using the tax rates and the tax
laws enacted or substantially enacted as on the balance sheet date.
Deferred tax assets on unabsorberj lax losses and unabsorbed tax
depreciation are recognised only when there is a virtual certainly of
their realisation. Other deferred tax assets are recognised only when
there is a reasonable certainty of their realisation.

o. Impairment

The Company reviews the carrying value of tangible and intangible
assets for any possible impairment at each balance sheet date. An
Impairment loss Is recognized when the carrying amount of an asset
exceeds its recoverable amount. In assessing the recoverable amount,
the estimated future cash flows are discounted to their present value
at appropriate discount rates,

p.Contingent liabilities

Contingent liabilities are disclosed !n respect of possible obligations
that arise from past events but their existence will be confirmed by
the occurrence or non -occurrence of one or more uncertain future
events not wholly within control of the Company. A provision is made
based on a reliable estimate when it is probable that an outflow of
resources embodying economic benefits will be required to settle an
obligation at the year end date. Contingent assets are not recognized
or disclosed in the financial statements.

q. Segment Reporting

Segments have been identified having regard to the dominant source and
nature of risks and returns and the internal organisation and
management structure. Inter-segment revenue is accounted on the basis
of market price. Unallocated corporate expenses include revenue and
expenses which relate to the''enterprise as a whole and are not
attributable to segments.

r. Borrowing Costs

Borrowing Costs that are attributable to the acquisition, construction
or production of a qualifying asset is capitalized as part of the cost
of that asset Other borrowing costs are recognized as expense in the
period in which they are incurred.

Mar 31, 2012

A. Basis of preparation of financial statements

The financial statements are prepared in accordance with Indian
Generally Accepted Accounting Principles ("GAAP") under the
historical cost convention on an accrual basis and are in conformity
with mandatory accounting standards, as prescribed by the Companies
(Accounting Standards) Rules, 2006, the provisions of the Companies
Act, 1956 and guidelines issued by the Securities and Exchange Board of
India (SEBI).

b. Use of Estimates

The preparation of the financial statements in conformity with GAAP
requires Management to make estimates and assumptions that affect the
reported balances of assets and liabilities and disclosure relating to
contingent liabilities as at the date of the financial statements and
reported amounts of income and expenses during the period. Examples of
such estimates include provision for doubtful debts, future obligations
under employee retirement benefit plans, income taxes and the useful
lives of fixed assets and intangible assets.

Management believes that the estimates used in the preparation of
financial statements are prudent and reasonable.

Future results could differ from these estimates.

c. Fixed assets, intangible assets and capital work in progress

Fixed assets and intangible assets are stated at cost of acquisition or
construction less accumulated depreciation and impairment. Cost
includes taxes, duties, freight and other incidental expense related to
acquisition and installation. Borrowing costs attributable to
acquisition, construction of qualifying asset (i.e. an asset requiring
substantive period of time to get ready for intended use) are
capitalized in accordance with the requirements of Accounting Standard
16(AS 16)," Borrowing Costs" mandated by Rule 3 of the Companies
(Accounting Standards) Rules 2006. .

Capital work in progress comprises of outstanding advances paid to
acquire fixed assets and cost of fixed assets that are not yet
ready for their intended use at the year end.

d. Depreciation and Amortisation

Depreciation is provided on straight line method, except for assets
acquired prior to January 1,1987 which are depreciated on reducing
balance method, at the rates and in the manner specified in Schedule
XIV to the Companies Act, 1956 as applicable from time to time, except
for assets costing less than Rs. 5,000 each which are fully depreciated
in the year of purchase. .

e. Assets Taken and Given on Lease Assets taken on lease:

i In respect of finance lease arrangements, the assets are capitalized
and depreciated. Finance charges are charged off to the Statement of
Profit and Loss account of the year in which they are incurred. '

ii. Operating lease payments are recognized as expenditure in the
Statement of Profit and Loss account on straight line basis,
representative of the time pattern of benefits received from the use of
the assets taken on lease.

Asset given on lease:

Lease rentals are accounted on accrual basis in accordance; with the
respective lease agreements. :

f. Investments

Long-term investments are valued at cost. Provision for diminution, if
any, in the value of investments is made to recognise a decline, other
than temporary.

Current investments are stated at the lower of cost and fair value,
computed individually for each investment. In case of investments in
mutual funds which are unquoted, net assets value is taken as fair
value.

g. Inventories

Inventories are stated at the lower of cost and net realizable value.
In determining the cost of loose tools, stores and spares, raw
materials and components, the weighted average method is used. Cost of
manufactured components, work in progress and manufactured finished
goods include cost of conversion and other costs incurred in bringing
the inventories to their present location and condition which is
determined on absorption cost basis.

h. inventories - Project in progress

Project in progress is valued at lower of cost or net realisable value.
Cost includes cost of land, materials, construction, services,
borrowing costs and other overheads relating to the particular
projects.

i. Foreign exchange transactions

Transactions in foreign currencies are recorded at the prevailing
exchange rates on the transaction dates. Realised gains . and losses
on settlement of foreign currency transactions are recognized in the
Statement of Profit and loss account.

Foreign currency monetary assets and liabilities at the year end are
translated at the year end exchange rates and resultant exchange
differences are recognised in the Statement of Profit and loss account.

j. Revenue recognition

i) Sale of goods is recognised be dispatch to customer and are recorded
net of sale tax and excise duties and excludes export incentives such
as duty drawbacks.

ii) Rental income is recognised on accrual basis. -

iii) Income from Joint development of property .will be recognized,
when Sale Deed will be executed in favour of the third party. ;

iv) Revenue from wind mill power project is recognised on the basis of
actual power sold as per the terms of the power purchase agreements
entered into with tha respective parties:

iv) Income from projects is recognized on the transfer of all
significant risks and rewards of ownership to the buyers and it is not
unreasonable to expect ultimate collection and no significant
uncertainty exists regarding the amount of consideration. However
if, at the time of transfer, substantial acts are yet to be performed
under the agreement, revenue is recognized on proportionate basis as
the acts are performed, i.e. on the percentage of completion basis,
subject to the actual cost incurred being at least 25% of the total
estimated project cost involved and further subject to. receipt of at
least 20% of the total sales consideration. Determination of revenues
under the percentage of completion method necessarily involves making
estimates by the Company, some of which are of a technical nature,
concerning, where. relevant, the percentages of completion, costs to
completion, the expected revenues from the project and the ;
foreseeable losses to completion.

k. Research and development expenditure ;

Research and development expenditure, other than capital expenditure is
expensed out as and when incurred. '

I. Retirement benefits

- Gratuity:

Liabilities with regard to the gratuity benefits payable In future are
determined by actuarial valuation at each Balance Sheet date using the
Projected Unit Credit method and contributed to Employees Gratuity Fund
managed by Life Insurance Corporation of India. Actuarial gains and
losses arising from changes in actuarial assumptions are recognized in
the Statement of Profit and Loss account in the period which they
arise.

- Leave encashment ;

The Company provides for the encashment of leave with pay subject to
certain rules. The employees are entitled to accumulate leave subject
to certain limits, for future encashment/availment. The liability is
provided based on the number of days of unutilized leave at each
balance sheet date on the basis of an independent actuarial valuation.

- Provident fund

Provident fund contributions are made to a trust administered by the
Company and are charged to the Statement of Profit and loss account.
The Company has an obligation to make good the shortfall if any,
between return of investment by the trust and government administered
interest rate.

m. Provisions

Provision is made when there is present obligation as a result of a
past event that probably requires an outflow of economic resources and
a reliable estimate can be made of the amount of the obligation. A
disclosure for a contingent liability is made, when there is a
possible obligation or a present obligation that may, but probably will
not, require an outflow of resources. When there is a possible
obligation or a present obligation in respect of which the likelihood
of outflow of resources is remote, no provision or disclosure is
made.

Liquidated damages/penalties are provided for meeting the obligations
arising from delay in contractual delivery schedules. Provision for
probable warranty claim is based on Management's estimate and
judgment and is provided as a percentage of average claims of past
three years for average warranty period of 18 months.

n. Accounting for taxes on income

Provision for current tax is made, based on the tax payable under the
Income Tax Act, 1961. Minimum Alternative Tax (MAT) credit, which is
equal to the excess of MAT (calculated in accordance with provisions of
section 115JB of the | Income tax Act, 1961) over normal income-tax is
recognized as an asset by crediting the Statement of Profit and Loss ;
Account only when and to the extent there is convincing evidence that
the Company will be able to avail the said credit against normal tax
payable during the period of ten succeeding assessment years.

Deferred tax on timing differences between taxable income and
accounting income is accounted for, using the tax rates and the tax
laws enacted or substantially enacted as on the balance sheet date.
Deferred tax assets on unabsorbed tax - losses and unabsorbed tax
depreciation are recognised only when there is a virtual certainty of
their realisation. Other deferred tax assets are recognised only when
there is a reasonable certainty of their realisation.

o. Impairment

The Company reviews the carrying value of tangible and intangible
assets for any possible impairment at each balance sheet date. An
impairment loss is recognized when the carrying amount of an asset
exceeds its recoverable amount. In assessing the recoverable amount,
the estimated future cash flows are discounted to their present value
at appropriate discount rates.

p. Contingent liabilities

Contingent liabilities are disclosed in respect of possible obligations
that arise from past events but their existence will be confirmed by
the occurrence or non -occurrence of one or more uncertain future
events not wholly within control of the Company. A provision is made
based on a reliable estimate when it is probable that an outflow of
resources embodying economic benefits will be required to settle an
obligation at the year end date. Contingent assets are not recognized
or disclosed in the financial statements. :

q. Segment Reporting

Segments have been identified having regard to the dominant source and
nature of risks and returns and the internal organisation and
management structure. Inter-segment revenue is accounted on the basis
of market price. Unallocated corporate expenses include revenue and
expenses which relate to the enterprise as a whole and are not
attributable to segments.

r. Borrowing Costs

Borrowing Costs that are attributable to the acquisition, construction
or production of a qualifying asset is capitalized as | part of the
cost of that asset. Other borrowing costs are recognized as expense in
the period in which they are incurred.

Mar 31, 2011

A. Basis of preparation of financial statements

The financial statements are prepared in accordance with Indian
Generally Accepted Accounting Principles ("GAAP") under the historical
cost convention on an accrual basis and are in conformity with
mandatory accounting standards, as prescribed by the Companies
(Accounting Standards) Rules, 2006, the provisions of the Companies
Act, 1956 and guidelines issued by the Securities and Exchange Board of
India (SEBI).

b. Use of Estimates

The preparation of the financial statements in conformity with GAAP
requires Management to make estimates and assumptions that affect the
reported balances of assets and liabilities and disclosure relating to
contingent liabilities as at the date of the financial statements and
reported amounts of income and expenses during the period. Examples of
such estimates include provision for doubtful debts, future obligations
under employee retirement benefit plans, income taxes and the useful
lives of fixed assets and intangible assets.

Management believes that the estimates used in the preparation of
financial statements are prudent and reasonable. Future results could
differ from these estimates.

c. Fixed assets, intangible assets and capital work in progress

Fixed assets and intangible assets are stated at cost of acquisition or
construction less accumulated depreciation and impairment. Cost
includes taxes, duties, freight and other incidental expense related to
acquisition and installation. Borrowing costs attributable to
acquisition, construction of qualifying asset (i.e. an asset requiring
substantive period of time to get ready for intended use) are
capitalized in accordance with the requirements of Accounting Standard
16 (AS 16)," Borrowing Costs" mandated by Rule 3 of the Companies
(Accounting Standards) Rules 2006.

Capital work in progress comprises of outstanding advances paid to
acquire fixed assets and cost of fixed assets that are not yet ready
for their intended use at the year end.

d. Depreciation and Amortisation

Depreciation is provided on straight line method, except for assets
acquired prior to January 1,1987 which are depreciated on reducing
balance method, at the rates and in the manner specified in Schedule
XIV to the Companies Act, 1956 as applicable from time to time, except
for assets costing less than Rs. 5,000 each which are fully depreciated
in the year of purchase.

e. Assets Taken and Given on Lease Assets taken on lease:

i In respect of finance lease arrangements, the assets are capitalized
and depreciated. Finance charges are charged off to the Profit and Loss
account of the year in which they are incurred.

ii. Operating lease payments are recognized as expenditure in the
Profit and Loss account on straight line basis, representative of the
time pattern of benefits received from the use of the assets taken on
lease.

Asset given on lease:

Lease rentals are accounted on accrual basis in accordance with the
respective lease agreements.

f. Investments

Long-term investments are valued at cost. Provision for diminution, if
any, in the value of investments is made to recognise a decline, other
than temporary.

Current investments are stated at the lower of cost and fair value,
computed individually for each investment. In case of investments in
mutual funds which are unquoted, net assets value is taken as fair
value.

g. Inventories

Inventories are stated at the lower of cost and net realizable value.
In determining the cost of loose tools, stores and spares, raw
materials and components, the weighted average method is used. Cost of
manufactured components, work in progress and manufactured finished
goods include cost of conversion and other costs incurred in bringing
the inventories to their present location and condition which is
determined on absorption cost basis.

h. Inventories - Project in progress

Project in progress is valued at lower of cost or net realisable value.
Cost includes cost of land, materials, construction, services,
borrowing costs and other overheads relating to the particular
projects.

i. Foreign exchange transactions

Transactions in foreign currencies are recorded at the prevailing
exchange rates on the transaction dates. Realised gains and losses on
settlement of foreign currency transactions are recognized in the
profit and loss account.

Foreign currency monetary assets and liabilities at the year end are
translated at the year end exchange rates and resultant exchange
differences are recognised in the profit and loss account.

j. Revenue recognition

i) Sale of goods is recognised on dispatch to customer and are recorded
net of sale tax and excise duties and excludes export incentives such
as duty drawbacks.

ii) Rental income is recognised on accrual basis.

iii) Income from Joint development of property will be recognized, when
Sale Deed will be executed in favour of the third party.

iv) Revenue from wind mill power project is recognised on the basis of
actual power sold as per the terms of the power purchase agreements
entered into with the respective parties.

v) Income from projects is recognized on the transfer of all
significant risks and rewards of ownership to the buyers and it is not
unreasonable to expect ultimate collection and no significant
uncertainty exists regarding the amount of consideration. However if,
at the time of transfer, substantial acts are yet to be performed under
the agreement, revenue is recognized on proportionate basis as the acts
are performed, i.e. on the percentage of completion basis, subject to
the actual cost incurred being at least 25% of the total estimated
project cost involved and further subject to receipt of at least 20% of
the total sales consideration. Determination of revenues under the
percentage of completion method necessarily involves making estimates
by the Company, some of which are of a technical nature, concerning,
where relevant, the percentages of completion, costs to completion, the
expected revenues from the project and the foreseeable losses to
completion.

k. Research and development expenditure

Research and development expenditure, other than capital expenditure is
expensed out as and when incurred.

I. Retirement benefits

- Gratuity

Liabilities with regard to the gratuity benefits payable in future are
determined by actuarial valuation at each Balance* Sheet date using the
Projected Unit Credit method and contributed to Employees Gratuity Fund
managed by Life Insurance Corporation of India. Actuarial gains and
losses arising from changes in actuarial assumptions are recognized in
the Profit and Loss account in the period which they arise.

- Leave encashment

The Company provides for the encashment of leave with pay subject to
certain rules. The employees are entitled to accumulate leave subject
to certain limits, for future encashment/availment.The liability is
provided based on the number of days of unutilized leave at each
balance sheet date on the basis of an independent actuarial valuation.

- Provident fund

Provident fund contributions are made to a trust administered by the
Company and are charged to the Profit and loss account. The Company has
an obligation to make good the shortfall if any, between return of
investment by the trust and government administered interest rate.

m. Provisions

Provision is made when there is present obligation as a result of a
past event that probably requires an outflow of economic resources and
a reliable estimate can be made of the amount of the obligation. A
disclosure for a contingent liability is made, when there is a possible
obligation or a present obligation that may, but probably will not,
require an outflow of resources. When there is a possible obligation or
a present obligation in respect of which the likelihood of outflow of
resources is remote, no provision or disclosure is made.

Liquidated damages/penalties are provided for meeting the obligations
arising from delay in contractual delivery schedules.

Provision for probable warranty claim is based on Managements estimate
and judgment and is provided as a percentage of average claims of past
three years for average warranty period of 18 months

n. Accounting for taxes on income

Provision for current tax is made, based on the tax payable under the
Income Tax Act, 1961. Minimum Alternative Tax (MAT) credit, which is
equal to the excess of MAT (calculated in accordance with provisions of
section 115JB of the Income tax Act, 1961) over normal income-tax is
recognized as an asset by crediting the Profit and Loss Account only
when and to the extent there is convincing evidence that the Company
will be able to avail the said credit against normal tax payable during
the period of ten succeeding assessment years.

Deferred tax on timing differences between taxable income and
accounting income is accounted for, using the tax rates and the tax
laws enacted or substantially enacted as on the balance sheet date.
Deferred tax assets on unabsorbed tax losses and unabsorbed tax
depreciation are recognised only when there is a virtual certainty of
their realisation. Other deferred tax assets are recognised only when
there is a reasonable certainty of their realisation.

o. impairment

The Company reviews the carrying value of tangible and intangible
assets for any possible impairment at each balance sheet date. An
impairment loss is recognized when the carrying amount of an asset
exceeds its recoverable amount. In assessing the recoverable amount,
the estimated future cash flows are discounted to their present value
at appropriate discount rates.

p. Contingent liabilities

Contingent liabilities are disclosed in respect of possible obligations
that arise from past events but their existence will be confirmed by
the occurrence or non - occurrence of one or more uncertain future
events not wholly within control of the Company. A provision is made
based on a reliable estimate when it is probable that an outflow of
resources embodying economic benefits will be required to settle an
obligation at the year end date. Contingent assets are not recognized
or disclosed in the financial statements.

q. Segment Reporting

Segments have been identified having regard to the dominant source and
nature of risks and returns and the internal organisation and
management structure. Inter-segment revenue is accounted on the basis
of market price. Unallocated corporate expenses include revenue and
expenses which relate to the enterprise as a whole and are not
attributable to segments.

r. Borrowing Costs

Borrowing Costs that are attributable to the acquisition, construction
or production of a qualifying asset is capitalized as part of the cost
of that asset. Other borrowing costs are recognized as expense in the
period in which they are incurred.

Mar 31, 2010

A. Basis of preparation of financial statements

The financial statements are prepared in accordance with Indian
Generally Accepted Accounting Principles ("GAAP") under the historical
cost convention on an accrual basis and are in conformity with
mandatory accounting standards, as prescribed by the Companies
(Accounting Standards) Rules, 2006, the provisions of the Companies
Act, 1956 and guidelines issued by the Securities and Exchange Board
of India (SEBI).

b. Use of Estimates

The preparation of the financial statements in conformity with GAAP
requires Management to make estimates and assumptions that affect the
reported balances of assets and liabilities and disclosure relating to
contingent liabilities as at the date of the financial statements and
reported amounts of income and expenses during the period. Examples of
such estimates include provision for doubtful debts, future obligations
under employee retirement benefit plans, income taxes and the useful
lives of fixed assets and intangible assets.

Management believes that the estimates used in the preparation of
financial statements are prudent and reasonable. Future results could
differ from these estimates.

c. Fixed assets, intangible assets and capital work in progress

Fixed assets and intangible assets are stated at cost of acquisition or
construction less accumulated depreciation and impairment. Cost
includes taxes, duties, freight and other incidental expense related to
acquisition and installation. Borrowing costs attributable to
acquisition, construction of qualifying asset (i.e. an asset requiring
substantive period of time to get ready for intended use) are
capitalized in accordance with the requirements of Accounting Standard
16 . (AS 16)," Borrowing Costs" mandated by Rule 3 of the Companies
(Accounting Standards) Rules 2006.

Capital work in progress comprises of outstanding advances paid to
acquire fixed assets and cost of fixed assets that are not yet ready
for their intended use at the year end.

d. Depreciation and Amortisation

Depreciation is provided on straight line method, except for assets
acquired prior to January 1,1987 which are depreciated on reducing
balance method, at the rates and in the manner specified in Schedule
XIV to the Companies Act, 1956 as applicable from time to time, except
for assets costing less than Rs. 5,000 each which are fully depreciated
in the year of purchase.

e. Assets Taken and Given on Lease Assets taken on lease:

i In respect of finance lease arrangements, the assets are capitalized
and depreciated. Finance charges are charged off to the Profit and Loss
account of the year in which they are incurred.

ii. Operating lease payments are recognized as expenditure in the
Profit and Loss account on straight line basis, representative of the
time pattern of benefits received from the use of the assets taken on
lease.

Asset given on lease:

Lease rentals are accounted on accrual basis in accordance with the
respective lease agreements.

f. Investments

Long-term investments are valued at cost. Provision for diminution, if
any, in the value of investments is made to. recognise a decline,
other than temporary.

Current investments are stated at the lower of-cost and fair value,
computed individually for each investment. In case of investments in
mutual funds which are unquoted, net assets value is taken as fair
value.

g. Inventories

Inventories are stated at the lower of cost and net realizable value.
In determining the cost of loose tools, stores and spares, raw
materials and components, the weighted average method is used. Cost of
manufactured components, work in progress and manufactured finished
goods include cost of conversion and other costs incurred in bringing
the inventories to their present location and condition which is
determined on absorption cost basis.

h. Inventories - Project in progress

Project in progress is valued at lower of cost or net realisable value.
Cost includes cost of land, materials, construction, services,
borrowing costs and other overheads relating to the particular
projects.

i. Foreign exchange transactions

Transactions in foreign currencies are recorded at the prevailing
exchange rates on the transaction dates. Realised - gains and losses on
settlement of foreign currency transactions are recognized in the
profit and loss account.

Foreign currency monetary assets and liabilities at the year end are
translated at the year end exchange rates and resultant exchange
differences are recognised in the profit and loss account.

j. Revenue recognition

i) Sale of goods is recognised on dispatch to customer and are recorded
net of sale tax and excise duties and excludes export incentives such
as duty drawbacks.

ii) Rental income is recognised on accrual basis.

iii) Income from Joint development of property will be recognized, when
Sale Deed will be executed in favour of the third party.

iv) Revenue from wind mill power project is recognised on the basis of
actual power sold as per the terms of the power purchase agreements
entered into with the respective parties.

v) Income from projects is recognized on the transfer of ail
significant risks and rewards of ownership to the buyers and it is not
unreasonable to expect ultimate collection and no significant
uncertainty exists regarding the amount of . consideration. However
if, at the time of transfer, substantial acts are yet to be performed
under the agreement, revenue is recognized on proportionate basis as
the acts are performed, i.e. on the percentage of completion basis,
subject to the actual cost incurred being at least 25% of the total
estimated project cost involved and further subject to receipt of at
least 10% of the total sales consideration. Determination of revenues
under the percentage of completion method necessarily involves making
estimates by the Company, some of which are of a technical nature,
concerning, where relevant, the percentages of completion, costs to
completion, the expected revenues from the project and the foreseeable
losses to completion.

k. Research and development expenditure

Research and development expenditure, other than capital expenditure is
expensed out as and when incurred.

I. Retirement benefits

- Gratuity:

Liabilities with regard to the gratuity benefits payable in future are
determined by actuarial valuation at each Balance Sheet date using the
Projected Unit Credit method and contributed to Employees Gratuity Fund
managed by Life Insurance Corporation of India. Actuarial gains and
losses arising from changes in actuarial assumptions are recognized in
the Profit and Loss account in the period which they arise.

- Leave encashment

The Company provides for the encashment of leave with pay subject to
certain rules. The employees are entitled to accumulate leave subject
to certain limits, for future encashment/availment. The liability is
provided based on the number of days of unutilized leave at each
balance sheet date on the basis of an independent actuarial valuation.

- Provident fund

Provident fund contributions are made to a trust administered by the
Company and are charged to the Profit and loss account. The Company has
an obligation to make good the shortfall if any, between return of
investment by the trust and government administered interest rate.

m. Provisions

Provision is made when there is present obligation as a result of a
past event that probably requires an outflow of economic resources and
a reliable estimate can be made of the amount of the obligation. A
disclosure for a contingent liability is made, when there is a possible
obligation or a present obligation that may, but probably will not,
require an outflow of resources. When there is a possible obligation on
a present obligation in respect of which the likelihood of outflow of
resources is remote, no provision or disclosure is made.

Liquidated damages/penalties are provided for meeting the obligations
arising from delay in coniractuai delivery schedules.

Provision for probable warranty claim is based on Managements estimate
and judgment and is provided as a percentage of average claims of past
three years for average warranty period of 18 months.

n. Miscellaneous expenditure (to the extent not written off)

Compensation paid under Voluntary Retirement Scheme is amortized fully
up to March 31,2010, as per the provisions of Accounting Standard 15 -
on Employee Benefits.

o. . Accounting for taxes on income

Provision for current tax is made, based on the tax payable under the
Income Tax Act, 1961. Minimum Alternative Tax (MAT) credit, which is
equal to the excess of MAT (calculated in accordance with provisions of
section 115 JB of the income tax Act, 1961) over normal income-tax is
recognized as an asset by crediting the Profit and Loss Account only
when and to the extent there is convincing evidence that the Company
will be able to avail the said credit against normal tax payable during
the period of ten succeeding assessment years.

Deferred tax on timing differences between taxable income and
accounting income is accounted for, using the tax rates and the tax
laws enacted or substantially enacted as on the balance sheet date.
Deferred tax assets on unabsorbed tax losses and unabsorbed tax
depreciation are recognised only when there is a virtual certainty of
their realisation. Other deferred tax assets are recognised only when
there is a reasonable certainty of their realisation.

p. Impairment - i

The Company reviews the carrying value of tangible and intangible
assets for any possible impairment at each balance sheet date. An
impairment loss is recognized when the carrying amount of an asset
exceeds its recoverable amount. In assessing the recoverable amount,
the estimated future cash flows are discounted to their present value
at appropriate discount rates.

q. Contingent liabilities

Contingent liabilities are disclosed in respect of possible obligations
that arise from past events but their existence will be confirmed by
the occurrence or non -occurrence of one or more uncertain future
events not wholly within control of the Company. A provision is made
based on a reliable estimate when it is probable that an outflow of
resources embodying economic benefits will be required to settle an
obligation at the year end date. Contingent assets are not recognized
or disclosed in the financial statements.

r. Segment Reporting

Segments have been identified having regard to the dominant source and
nature of risks and returns and the internal organisation and
management structure. Inter-segment revenue is accounted on the basis
of market price. Unallocated corporate expenses include revenue and
expenses which relate to the enterprise as a whole and are not
attributable to segments.

s. Borrowing Costs

Borrowing Costs that are attributable to the acquisition, construction
or production of a qualifying asset is capitalized as part of the cost
of that asset. Other borrowing costs are recognized as expense in the
period in which they are incurred.